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They will fit a 540, but the eights of the M5 and 540 are not the same so where you might get an equivalent drop in the back, the front will be higher as the weight of the M5 in front is heavier than the weight of a 540. The shocks have been valved for the weight of an M5.

If your car deosn't see consistent track duty then IMO coilovers are just a waste of money. A good set of springs and shocks can provide equal handling in street conditions at a much lower price The difference in money can go towards upgrading the other suspension components like sway bars, and bushings.

That is the wrong way to think about it. Raising it for winter will make your car feel like a 4x4 corvette. The ride will be stiff, cause the springs will be pre-compressed too much, and these being more sports tuned, will have a more temperature sensitive strut. I.E. your car will ride like crap in the winter.